Five months after the project was unveiled, Binance announced the launch of its Binance Smart Chain blockchain today, which enables creation of smart contracts and allows users to stake BNB, Binance’s very own token.
The blockchain is compatible with Ethereum Virtual Machine, which may increase the utility of both Binance Chain and the BNB token. BNB, which is an ERC-20 token, has a market capitalization of around $3 billion, at press time.
The new blockchain network is also capable of producing a block every 3 seconds according to the release and runs on Proof of Staked Authority (PoSA) consensus algorithm. Moreover, the company claimed that PoSA will allow the validators to receive rewards on Binance Chain without forgoing transaction speed.
Additionally, the blockchain has made provisions for the creation of decentralized applications (dApps) in the Binance Chain ecosystem, which also enables developers to make decentralized finance (DeFi) services and products.
Binance Smart Chain said it would have lower transaction fees which would reach as low as 1 cent. The company also included the support of the Binance DEX’s (a decentralized exchange) digital asset ecosystem.
The posted listed benefits of Binance Smart Chain:
- A rich and growing digital asset ecosystem powered by Binance DEX, the leading decentralized exchange
- Cheap transaction fees that reach as low as 1 cent
- High performance with a network capable of producing a block every 3 seconds
- Cross-chain DeFi mechanisms that increase DeFi interoperability
- A supportive Binance ecosystem that funds and bootstraps many DeFi projects
- A growing ecosystem of millions of users across Binance.com and Binance DEX
- A network of major crypto projects already collaborating with BSC